Cineworld Group PLC (LSE:CINE), the UK-listed cinema chain, has been told by a bankruptcy judge to accelerate its restructuring plan and the closing of more theatres.
According to reports from US news sources, Judge Marvin Isgur, of the Southern District of Texas, told the company that the court would "not stick around forever", and that it needed to be "aggressive" in dealing with debtors and creditors.
Specifically, the company was told it needed to finalise which theatres will be closing while completing lease negotiations with landlords.
Cineworld initially filed for Chapter 11 bankruptcy in September 2022 and has closed 23 operations since then, while reaching new lease agreements with a quarter of landlords.
Meanwhile, negotiations with other landlords for the rest of the company's portfolio are "well underway", according to Cineworld's attorney, Josh Sussberg of Kirkland & Ellis.
In Wednesday's hearing, Judge Isgur is reported as saying: "We are not going to stick around forever. The debtors need to be aggressive. I am not sitting here for a year, or for six months, to figure out what shops are closing.
"That is a process that is going to happen now. I have been very patient in this case [but] I want to see more action in terms of what this future company is going to look like … We need to move on with life."
Sussberg responded by saying that the management team has made it clear that it is willing to close additional theatres if landlords do not engage, and encouraged all parties to work together.
Cineworld has been struggling due to the impact of the COVID-19 pandemic on the entertainment industry.
It was also hit by the delay or cancellation of several major movie releases, which further impacted its bottom line.